Southern California Public Power Authority awards Aker Kvaerner USD 121 million contract for Magnolia Power Project

Southern California Public Power Authority (SCPPA) has awarded Aker Kvaerner a USD 121 million contract for the Magnolia Power Project, a 250 megawatt, natural gas-fueled, combined cycle power plant in Burbank, California.

Southern California Public Power Authority (SCPPA) has awarded Aker Kvaerner a USD 121 million contract for the Magnolia Power Project, a 250 megawatt, natural gas-fueled, combined cycle power plant in Burbank, California. The scope of work includes engineering, procurement, and construction (EPC)

This award follows the completion of USD 645,000 of preliminary engineering tasks in 2002. SCPPA has now completed the state licensing process and received financing, allowing full release of the project.

“Magnolia Power Project participants are very pleased to begin work with Aker Kvaerner staff to produce a reliable and highly efficient electricity resource for the Southern California cities of Anaheim, Burbank, Cerritos, Colton, Glendale and Pasadena,” said Ron Davis, project director. “Aker Kvaerner’s proven integral design and construction management abilities will help ensure that the Magnolia Power Project is available for energy delivery in time for the 2005 peak summer electrical use period.”

Davis added, “Aker Kvaerner’s highly respected power plant experience and construction expertise were key factors in our contractor selection process.”

For further information, please contact:

Aker Kvaerner Group, Oslo, Norway

Geir Arne Drangeid, Senior Vice President Group Communication, Kværner ASA Tel: +47 913 10 458 Tore Langballe, Vice President Investor Relations, Kværner ASA Tel: +47 6751 3106

or

San Ramon, CA

Jason Cohen Tel: +1 (925) 244 6064, email: jason.cohen@akerkvaerner.com

www.akerkvaerner.com